POLICY AIMS:   1.1 TELECOMMUNICATIONS

Telecommunications is expected to make a leading contribution to national development, and is also of increasing importance to business.

Accordingly, the Ministry will make sure that telecommunication services are provided efficiently and in sufficient quantity, and are of a quality and variety that meet the economic and social needs of the country at affordable prices.

The Ministry expects the standards of service to match the best in Africa.

To achieve these objectives, the Ministry has set the following targets-

(a)   to increase the number of working telephone Apes to not less than 150,000 by the end of year 2003 and to reach two lines for every one hundred people as soon as possible after that date.
Many more people want to use the telephone network than can do so at present. Many areas of the country are also not well serviced. A five year programme of expansion will be agreed with MPTC. MPTC will be enabled to raise finance and to seek technical assistance from whatever sources are available, private as well as public, in order to expand the provision of basic telephone service to the level justified by demand. In future other operators will be authorised to install and operate public networks with such conditions as shall be imposed under licence.

(b) to raise quality of service to international standards.
At present, the telephone network suffers from congestion and a high level of faults. Investment in modern facilities will do much to improve quality of services. But a more business-like management of the network is also essential to maintain high standards.

In addition, the new regulatory arrangements set out below will include specific targets for the key aspects of quality of service, which will be rigorously monitored and enforced.

(c)     to stimulate the provision of new services within Malawi.
Access to the Internet and to the growing variety of data and other value added services has become vital for business services and the -community at large. The provision of these non-basic telephone services (presently - Internet, e-mail, data, paging, etc.) will be liberalised immediately so that the people of Malawi can take full advantage of these new opportunities without restriction.

(d)     to reduce the price of telecommunication services in real terms.
Expansion and modernisation of the network with new technology will make it possible for the prices charged for basic telephone services to be lower in real terms. If MPTC is successful in improving its efficiency, this will ensure that its services are competitively priced while allowing a reasonable return on investment.

(e)    to extend access to modern telecommunication services throughout the country according to a defined programme covering rural areas.
The National Operator has an obligation to extend access to the network and to services into rural areas. Because of the cost, this cannot be achieved overnight.

To make progress, a programme will be prepared and targets agreed with MPTC for the provision of public telecommunication facilities in rural areas, through payphones, community phones and other means. In addition, community information centres bringing together public telecommunications and other means of access to information will be developed in rural areas.

(f) to open up the provision of telecommunication services to the private sector.
The National Operator will continue to be primarily responsible for   the    infrastructure    required    to    support      public telecommunications.      But the services themselves will be liberalised. In addition to other non-basic telephone services, it is envisaged that a second cellular mobile radio service and local telephone network operators will be licensed. Consideration will be given to a second national fixed network operator in due course.

(i)     the establishment of an independent regulatory body which will license operators and service providers ;
(ii)    the re-organisation of the existing network operations along commercial lines;
(iii)   the separation of posts from telecommunications
(iv)   the introduction of private capital, management and technical expertise with the objective of eventual privatisation of the National Operator.
 
MPTCs telecommunications business will be transferred to a new company, Malawi Telecom, to be set up under the Companies Act as an autonomous commercial entity. Malawi Telecom will initially be 100% owned by the Government, but consideration will be given to how best to allow the private sector to participate in its activities.
 
Postal services will continue to be provided by a statutory corporation, to be called Malawi Posts.
 
To enable this strategy to be implemented, Parliament will be asked to enact fresh legislation.    Under its provisions, MPTC will divest itself of direct responsibility  for the regulation of telecommunications. This responsibility  will be assumed by an autonomous entity, the Malawi Communications Regulatory Authority (MACRA). In future, all telecommunication services will be provided on a commercial basis, by businesses which will be accountable to their owners and to MACRA through the licensing process. The effective separation of regulation from operations should offer a strong reassurance for users, staff, potential investors and the general public that the improvement of the provision of services will have overriding priority.

Next: 1.2 Postal Services
 
 

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